Among the key US-specific take-aways from KPMG's newly-released report on its "2017 Global Audit Committee Pulse Survey" of 832 audit committee members and chairs are whether, and to what extent, audit committees' perceived top challenges to the company are properly reflected on their audit committee meeting agendas.
US audit committee respondents ranked these issues as the top three challenges to the company, respectively:
(i) managing cybersecurity risk
(ii) the effectiveness of the company's risk management program
(iii) legal/regulatory compliance
Importantly, all appear to be receiving due consideration on respondents' committee meeting agendas, with between 95% - 100% of respondents expressing that they are "satisfied" or "somewhat satisfied" that their agenda is properly focused on these issues. As to cyberrisk management specifically, US respondents identified vulnerability from third parties/supply chain as the most significant challenge to the company's ability to manage this issue.
Also noteworthy are the US-specific results relating to the audit committee's time and expertise to oversee the major risks on its agenda in addition to carrying out its core oversight responsibilities. As to whether they have the time, 68% of respondents said "yes," and 30% said "yes, but it is increasingly difficult." As to whether they have the expertise, 74% said "yes," and 24% said "yes, but it is increasingly difficult." The fact that audit committee members overwhelmingly believe they have the necessary time and expertise (notwithstanding the expected increasing difficulties in managing a seemingly ever-expanding workload and risk portfolio) is significant - particularly in comparison to the other country survey results presented in the report.
This type of benchmarking data can be used to facilitate the audit committee's discussion about its perceived chief areas of current risk and associated meeting agenda priorities, as well as whether growing time and expertise constraints may warrant consideration of reallocation of certain board/committee responsibilities and/or better use - or retention - of additional internal or external resources.